Why Samsung Might Turn to Blockchain for Its Global Supply Chain
Samsung could stand to realize significant savings if the company turns to blockchain for its global supply chain.
Speaking to Bloomberg in an interview published on Sunday, Samsung blockchain chief Song Kwang-woo said that the company will decide soon whether the use the blockchain ledger to manage its supply chain shipments across the world. According to the report, Samsung spends billions of dollars a year on those shipments and could cut its costs by as much as 20% by relying on blockchain.
Blockchain is best known for its use by cryptocurrencies like Bitcoin and others to keep track of transactions and ensure the accuracy of cryptocurrency valuations. But at its core, blockchain is a digital ledger that can be used to track and verify anything. Companies in the logistics industry have been taking an extra-hard look at blockchain because it can accurately automate many of the current functions that require much slower and more costly human interaction.
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According to the report, Samsung’s supply chain manages everything from the flow of components for its devices to the shipments of its finished products to store shelves. In total, the company’s logistics division, Samsung SDS, will take on 1 million shipping units and 488,000 tons of air cargo. The company believes that blockchain will allow for a faster and more efficient flow of those shipments and could ultimately quicken the pace of product launches.
Samsung didn’t tell the news service when it will finally make its decision on whether to deploy blockchain across its supply chain.